By Christopher Makaza| The 2018 tobacco marking season officially started yesterday on a high note with the first tobacco bale fetching $4.90 per kilogramme, a first of its kind in many years.
Vice President Constantino Chiwenga officially opened the marketing season yesterday at Tobacco Sales Floors which traditionally signifies the end of January disease.
Tobacco farmers expressed hope in the new dispensation for a better marketing season. Last season the, first bales fetched $4.60 which farmers were not happy with.
Tobacco farmers were having high spirits and hoped that the prices will remain favourable throughout the marketing season. They, however, appealed for a review of the daily withdrawal limit of $300 recently pegged by Reserve Bank of Zimbabwe (RBZ).
To ensure a smooth payment system that is consistent with international best practice on daily cash withdrawal limits, RBZ some weeks ago revealed that growers shall be paid a maximum of $300 per day through banks stationed at the auction floors. Farmers, however, felt there is need for Government to increase the withdrawal limit to about $1000 so that they can be able to pay for their labour back home as some of their work force do not have the recommended plastic money facility.
Addressing farmers and other stakeholders at the event, Vice President Chiwenga highlighted that Government through RBZ is committed to coming up with policy interventions that will support the entire sector adding that it will buttress the already existing export incentives and finance to ensure access to affordable inputs by farmers. Vice President Chiwenga also announced that the golden leaf
will start from this season be covered under the Command Agriculture Programme which came as good news to tobacco farmers.
Farmers are eagerly waiting to receive the 12.5 percent export incentives promised by RBZ, an increase from last year`s 5%. Most tobacco farmers countrywide are in the middle of curing their crop and wanted to make use of the opening to raise funds to cushion their labour and other related expenses.
Tobacco buyers worked tirelessly to make sure they provided the best services to farmers in terms of security, resting places, ablution facilities and money among other services.
The starting of the tobacco marketing season will be felt countrywide as the proceeds will circulate in most business entities. It will not be business as usual to the business community, not only to those who operate near tobacco sales floors but countrywide. It is that time of the year when vendors of assortment of goods experience business boom as farmers don’t hesitate to spend their hard earned cash.
The new dispensation through the RBZ has already increased the Tobacco Finance Facility from US$28 to $70 million for the 2018 planting season in an effort to ensure that inputs get to the farmer at affordable prices. The tobacco industry is registering more and more farmers each year, meaning to say the demand for cash will also increase. So there is need for RBZ to do away with hard cash issue and rather encourage farmers to use plastic money. For security reasons, plastic money is also good for farmers as thieves will be at the auction floors waiting for the farmers` hard earned cash.